Insider trading can act as a check on malfeasance within a company; insiders who know the books are being cooked, for example, can start dumping their stock, alerting the market that something is up.
Saturday, October 17, 2009
Does Insider Trading Ban Do More Harm Than Good?
In light of the SEC's recent Galleon Group insider trading charges, Harvard Senior Lecturer and blogger, Jeffrey Miron cites several reasons that make the case that securities laws than ban insider trading do more harm than good. Read his post, "Should Insider Trading be Illegal?."
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